Education & Training

Question: 
Do IAT entries have to be screened prior to posting?

Answer:
Although screening is not specifically mandated by the NACHA Operating Rules or OFAC, it is an accepted business practice adopted by the industry to ensure that entries involving blocked parties are identified and handled appropriately. This screening must be done prior to posting the entry since the RDFI is responsible for rejecting or freezing the proceeds of a transaction involving interests of blocked parties.